How This Investor Got Burned Buying an A Class Rental Property (Our Story: Part 2)


100 comments

  • Can u make a video on an LLC Holding company? And break down how to use it effectively; how to report to it, tax benefits, etc??? Thank U Much…..

  • Thank you for sharing your mistakes so we don't have to make them!

  • Thank you, Clayton and Natali! So appreciate your willingness to share what you've learned. Working toward financial independence for my family and it's encouraging to see your example! Keep up the great work, friends.

  • Mahesh Mike Varma

    Yes, I can tell he is having fun…. at your expense. Poor Natali.
    Thank you both for your sharing your experiences.
    What is the title of the first part ?

  • Loving your channel!! I've learned so much. Passive Income rocks!! You used to have soothing background music in some of your earlier videos… Please add it back, it was so calming to listen to while learning from your experience. 😉

  • I have a rough plan for 50 houses in 50 days- well it's pretty detailed. However when I'm analyzing leverage as we build value and cash year to year I want to optimize the number we acquire each year. Year one goal is 2 homes-then ramps up but what are both your thoughts or ideal number to purchase each year from year 1 to year 5. Our goal is $40k/month by end of year 5. At year 10 our goal is 200 homes.

  • One of my coworkers just bought a rental property in the most expensive neighborhood in Seattle – the down payment was nearly $200,000. I'm not Del Walmsley, but that seems like an unbelievably stupid investment. They could have bought 10 houses with that money or an apartment building.

  • I was considering a couple of 4 unit apartment complexes. It seems like that would be comparable to owning 4 class B or C, just in one place. Right now my issue is too much debt from being a single mom with a kid in college so my credit is not great, salary is good enough to qualify, but can't get financing or qualify for HELOC with what I do own.

  • Evelyn The Hosting Journey

    Nathalie – we love the details of the bodega… I can't wait to hear the next episode… I have that class a property in Brooklyn NY

  • Interesting story, imagine if grandma had properties across the bay in Menlo Park or Atherton? East bay is similar to NJ prices.

  • $2300/mo mortg&hoa…on a $37k income?

  • The problem that you didn't touch on is the "dilution" of the property due to all the children and grand children that have their share of that same property not to mention disagreements between them (or divorce) . how do you handle that? tnkx

  • northcacalacka545

    About to sell my class a and reinvest in class c. Thank you for showing me the difference in all the classes of houses. Makes a ton of sense to me!😁. Happy New Year.

  • Clayton – What microphone do you have? I have been doing some youtube videos and would like to add that mic to my setup

  • I always feel uncomfortable with the distinction of landlord or tenant friendly states. You know there are some slumlords out there

  • Hello, I am close to closing on my first property and this place needs a lot of work. I was wondering the brands and expense of the equipment you put in your houses? Such as the furnace, water heater, electrical panel, plumbing and of course THE ROOF. Thank You.

  • clayton if you ever get time [email protected] have 3 rentals and 100 k left want to ask a question your family is great just need advice 3 questions ty

  • Hello Clayton, I have been reading of how hard and risky it is to manage a class C&D property because they situate in a bad neighborhood.
    How does this differ when a Property Management Company (PMC) handles the management? Will there still be certain "Headaches"? Does the ROI change and is there certain unexpected costs? What's the method you use when purchasing real estate?

    On a side note: how many property does one (or a business/LLC) have to own to be able to hire a PMC?

    Thanks,
    Jose Lopez.

  • Outstanding! Thank you Both !!!! I'm learning so much, and I'm taking action for myself and my family! Your the best!

  • That’s crazy town. Lol

  • great series. I'm excited to hear the rest of your journey.

  • I heard you mention the Raleigh market in a negative light. What are the negative aspects of the Raleigh market in your guy's opinion?

  • Great video. The sound issues haven't been corrected yet. Either Clay's mic is too low or Natalie's is too high. Settings must be adjusted.

  • Great video!! I love listening to you both on iTunes Podcasts. It's real and open about your experiences. I'm inspired and will take action!

  • Hi Clayton, hoping to use the services of your company later this year. I currently am able to put aside half cash needed to buy a property from you. I contacted some peer to peer lenders to get more information but the interest rates are usually 13%+. Any idea what next steps I can try?

  • Natalie made a mistake! No way.

  • But what happens when autonomous driving decreases truck drivers by 50%, less invasive surguries gets rid of 50% of nursing jobs and detroit starts using robots (or moves jobs to China) and all those blue collar workers lose jobs?

  • Like if you think Natali is pretty.
    Also like if you find these videos super informative. 🙂

  • Any thoughts on the Miami market? Ready for first investment purchase not sure if Dade county is the right market

  • Also thoughts on buying lots maybe around 100k for 10500sq ft or so. Good investment to hold?

  • I love Natali’s additional details!

  • Can we have natali morris’s Parents on the podcast?

  • i'm curious to the math. 50 properties – $40k/mo = $800/property per month? I think you said previously that you bought a chunk than cash out refi and re-positioned into more properties. Therefore, the leveraged investment is still netting you $800/mo? I'm not being negative, just love the math but it seems a little high ? and, if each prop was aquired @$30k x 50 = $1.5mil. that seems doable. if 30% down is required, that's $450k down. Cashflow = $480K. That's 105% Cash on Cash in the first year.

  • Outstanding episode! Thanks so much for sharing your journey. It is very encouraging!

  • My GOD Morris did you ever get lucky with Natalie. I think she’s more valuable than your Real Estate properties. Lucky Guy

  • Haha, let her speak!

  • You guys rock.

  • Great video and very motivating! We watched all your videos on getting funding and we have to use a private lender as our credit is cramp, no cash at the moment, so I am about to have a conversation with a friend about JVing or a loan. My question is how do we make it a win/win for both and how do you refinance with a friend as a private lender? Can you do a video on pitching to a private lender with a 5, 15 or 30 yr mtg, how they would benefit and how we can come to own the property or properties?

  • As a junior in high school(I know right, who reads real estate investing books in high school!?) I read Rich Dad Poor Dad back. I loved it, it clicked with me. I read more real estate investing books and just caught the burning desire to invest in real estate. But I got lazy and spent my money on clothes and hanging out. It's taken me 17 years to finally push towards some of my subconscious goals I made back in high school. I have my first rental and pressing forward – can't wait to get the next. Anyways, I love what you guys are doing – your stories and positivity helped me push through last year in setting up my rental. I just got the first auto-draft payment this month from my tenant and it feels pretty good! I wish I would have followed the promptings I had in high school, I'd be so much farther ahead of the game. Your videos have helped spark that flame I had in high school – thanks for all the hard work you put into these videos =D

  • This is a great video! Like on point 🙌🏾

  • great information as always but hard to watch

  • Wow, thanks for sharing your stories. You guys are such an adorable couple!

  • You guys are the best.I love all your videos,appreciate for training and share your knowledge.wish you the best in journey of your life.

  • No shame on learning from our mistskes. Thanks for sharing guys 💪, hopefully i can start investing by the end of this year

  • What is your opinion on getting a real estate license while being a real estate investor? I know it allows for you to gain access to the MLS which can be effective.

  • i got burned on an A class property once…a condo. Thank you for the transparency. It really let's me see you can bounce back and succeed.

  • Guys, great video and stories. We are trying to get to our freedom number but seems we need many properties than 50. On a few shows, you guys mention you have about 50 properties that cash flow $40k/ month? That's $800/month per property. How is that possible if your ROI is 12-15%? Thanks!

  • Daniel Goldstain

    Awesome information. Thank you 😊

  • Did she say that she cash flows through 50 properties, 40k a month or does she mean 40k a year?

  • Hi guys, great show!
    Natalie can you please do a podcast explaining how did you get to the position for the banks start giving you loans? I saw some of your other podcasts and you kind of mention it but not really in detail.
    You said that since you were a staying home mom it was hard at the beginning to get a loan from the bank but that eventually they started lending money. Can you please explain that transition? How much did you have to make a month or what kind of things you had to have in place to get the banks to start giving you loans or for you to qualify in one?
    Thank you so much for all you do!

  • What about buying houses at auction? Is that recommended?

  • In His Glory Inspirations

    You guys are awesome my wife and I wanna be like u guys.

  • LoneHill Private Game Reserve

    How do I get hold of you guys? I am a young real estate investor in South Africa and have been loving the videos you guys put out. I’d love to get advise from you on possibly investing in real estate in the USA. Thanks so much and please keep the videos coming.

  • Great info and nice story of your journey so far. You two though are just so cute seeing talk back and forth hahah

  • german esturban

    I just became a fan and look forward to learning and growing with your channel.

  • Denise D Rivers

    Thank you…..much

  • buying my first property right now. wish me luck. love your show.

  • We are buying our second home and looking to rent out our first home. My first question is how you rent out a home with solar and show the renter that the increase in rent is cheaper than what their electric bill would be. Also if you have a property with a pool do you include pool service. By the way I’m in California and after watching this I’m scared of getting shafted by renters

  • This stuff is so valuable, one could not get this great advice and information in the nations highest university's. And I am coming form a position of having rental property in the past, not doing well at all with it, two separate times and now for the third time making it work. And it is working just as you guys are explaining how it should work. In a way it is just mathematical, just do the numbers and it will work.

  • Autodidact, great word.

  • Even if you kept your condo, if the same tenants lived in your unit, you could not get $4,000 a month because San Francisco is a rent control area. If the y live in the unit for more than 5 years, you cannot even move them out. It used to be that you could get them out but now you cannot even get them out even if you want to move in yourself. It is a real disaster.

  • César. Oi Marini

    Where can i see your service because you talk about your clients and i want to go into real state investments

  • u guys are awesome

  • I love these stories.

  • The idea of owning 50 houses scares me. What if rents plunge or disappear and tax bills come due? This is why long term I want to sell all my properties and move into stocks. No property taxes due on dividends! Government can liquidate homes!

  • You two are inspirational! I’ve been telling my husband I want to start investing and earning passive income.. we bought a house(260k).. we’ll my husband bought our first home with a conventional loan. I’m ready for a second under my name to start. But we are still unsure I have school loans 80k some cc debt 4K. Car is paid off. 30k in our savings. What to do?

  • Thanks for sharing your experience
    Very much learning 👍

  • Does anyone have an example template of "the books" an organization of how they would suggest to keep their income, properties, and info ?
    Thanks

  • What are your thoughts on qualifying your rental home for low income housing/hud/section 8 etc. We haven't started in the rentals yet, doing a lot of research first…but i thought the low income housing could be good because 70% or so if the rent is paid through the program, leaving the other 30% for the tenant, so that amount is guarantees every month…also they won't let anyone into the program wh a criminal history…on top of that I've been told thwy will ban you from getting assistance in the future if they desteoy the rental property or sometimes if they get evicted due to non payment…which makes them highly motivated to pay/take care of the property or it could be a disaster for them. On top of that, people are on long waiting lists for this type of housing bc there just aren't that many of them. So the odds of getting tenants quickly i would assume are high. They also advertise your home through the housing authority for free. You are required to pass a housing authority inspection but everything on the list is really something you should do to start wh if your a decent landlord. And they housing authority can make you lower your rent of they think its outside of what's acceptable in your area. I know a lot of people are probably again this type of renting thinking that their place will be "GHETTO" or something ya know. But i think providing quality homes to people in this situation, that are in great need for then, is a great thing to do for the community.

    I was just curious as a renter what your thoughts were on low income housing…any pros/cons?

  • My favourite word too ❤️ ok imma subscribe and like just because you used the word autodidact 👍🏻

  • You two make a great team, just started listening to you, and I’ve learned so much, thank you!

  • Wow, I have been wanting to dive into real estate investing for years but have always found myself overwhelmed and frozen. Always got stuck at "4 clicks in" with my past searches. I'm glad I found your channel. I have been incessantly watching your videos and I do plan to set up a call soon. Thanks a bunch for doing this for us over-thinkers. Ha!

  • Normally i get bored watching someone talk for so long..but this, from start to end kept me excited..thanks guys.
    -Learn from others mistakes –
    Great video…..

  • my grandparents also always gave me envelopes with handwriting and 20-50$ haha
    edit. 10% year right? as in rent/price or you including closing costs, and taxes on rent and expenses you might have?

  • Can not tell the both of you how much I appreciate you sharing your stories.

  • When you say $50K property. Im wondering where you get these? Are they fixers or straight land? In my state finding a property under $200K typically means it needs rehabbed. (Washington state)

  • Can you write off property taxes as yearly expense through your LLC?

  • 40K cash flow per month on 50 properties? thats 800 per property, how do you pull this off? Is the 40k gross or net? By cash flow I am thinking after all expenses paid.

  • You guys are just great 👍🏻

  • The fact you guys aren’t trained is why y’all are so smart, believe me. Anyway, I can’t wait to get down in the real estate market

  • Interesting video but would be better if sentences were completed.

  • Levi Family Jewelers

    My wife is very similar to you. She’s the backbone to our business and real estate. Thank you for sharing your story 🙂

  • Mt. Overwhelming… 1 step at a time.. thanks guys for the motivation…

  • Is there anyway to sue a negligent tenant for vandalism if they end up trashing your house?

  • Successive is what she was trying to say at the end I believe?

  • Johnathan SivIlay

    My first comment: Thank you so much for what you BOTH do. It has been extremely inspirational and educational. I just made an offer on a rental property today.

  • IS the HOA tax deductible even if its not owned in an LLC? If its a rental property in ones own name and not on LLC..

  • 18 year old looking to save up and get into real estate investing. So what does you company do exactly?

  • Joseph Bianchimano

    i hear you both i lost a property in 2008 , it stressed me out so much i had a stroke during this time , i worked as a realtor at remax , and had to leave the company because of the crash , i was not able to pay remax 2400 a month no sales , it was a very tough journey for me too.

  • Lol! What’s a bodega?

  • Great info—-thanks

  • Jacob Silvermetz

    You guys are the cutest. Thank you for the story!

  • Way too much time wasting. I’m looking forward to getting to the point.

  • LOL I worked at Kaiser. 6:50. Also, for anyone who is interested in this concept of providing for future generations, look at "The Great Laws of the Iroquois." 10:00

  • pinkorganichorse

    Clayton, put your foot down. You were right. The stories are clutter…a long-winded annoying distraction. I kept listening and listening and listening and listening and finally closed the video without getting a single point.

  • These 2 are having a feud.. And if we want to learn from them we have to listen to it

  • Clayton thank you and your wife Nataly for sharing your real estate stories..
    it’s a learning curb for me I appreciate it

  • blah blah blah..but damn she's super sexy

  • Hi. Really enjoy your channel. We are following you both and looking forward to reaching our financial freedom number in the next ten years. Wondering what your thoughts are on modular homes? Buy them, don't…build them or don't. Are c class investments the better way to amass legacy wealth? Your opinions and thoughts would be appreciated. Thanks

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